A Tour to Explore About CTR, CPC and CPM in Google Ads!!

Posted by Andre Russell on February 28th, 2020

Everybody is well-known that Google Ads are the most famous programs which use to earn money online. This is the ideal way of generating revenue. You can earn money either by a per-click or per-impression basis. In this blog, you would get to know some of the highly used or related terms in Google ads such as CTR, CPC, and CPM. 

Let’s define these significant terms in detail and their acronyms. These are primary terms that are used for measuring performance in affiliate marketing in various ways. So, let’s move further and explore what these terms are all about and how they aid to generate the revenue online. First of all, define what CTR-is 

CTR

CTR is defined as Click-Through-Rate. For measuring the success of the online ad campaign, it is used because via this it is easy to measure the performance of any ad. You can calculate the percentage by this method by dividing the number of visitors who clicked on the ad by the number of times the ad was delivered. It determines how often the visitors click on your ads. You can understand it with an example. Let’s have a look at the example which would clear it to you that what is CTR in Google ads. You can increase your website CTR with the help of best SEO services company.

CTR = ( Clicks / # of impressions, views, or queries) * 100%

You can understand it with an example such as-

Let’s suppose that there are 10 clicks on your page and views are 1000, then you can determine the click-through rate by the above formula.

CTR = (Clicks / # of impressions, views, or queries) * 100%

CTR = (10/1000) * 100%

CTR = 1%

CPC

CPC stands for Cost-per-click. This is an internet advertising model that is used for driving traffic to the websites. If you are an advertiser, then you need to pay for a publisher i.e. mainly search engine which your ad is clicked by the customers. It means that you have to pay for an easy click on the ads which you are running for the promotion of your brand. You can set the maximum cost-per-click bid. This is a paid advertising term that determines the costs of showing users ads on the search engine.

CPC is calculated by dividing the total cost of your clicks by the total number of clicks. And, the average CPC is calculated on the basis of your actual CPC. Sometimes, it is possible that your average CPC is different than maximum CPC.

CPM

CPM stands for the for Cost-per-thousand impressions. It is a way to bid to pay for the Google display network for per one thousand views on your ads. In it, you would pay only when your ads are seen by the users. This is calculated by taking the cost of the ads and divided by the total number of impressions, then multiply by 1000.

CPM = cost/impressions x 1000

This is easy to calculate and an effective way of representing the cost of the one thousand ad impressions.

Now hope you would surely understand the CTR, CPC, and CPM in Google Ads and how it is useful for your business. You can generate a huge profit by using these advertising methods from your online business. Apart from this, you can avail of the SEO services from any reliable SEO agency and make your website visible on the top position in the search engine result pages and generate the organic traffic. All the above-told ways are paid advertising method which would surely be beneficial for your business if used smartly. These methods are not only good to generate huge revenue from your online business but also enhance brand awareness.

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